World Health Energy Holdings Reports Revenue Growth to $49.4 Million in Q1 2025

World Health Energy Holdings, Inc. (WHEN) reported its financial results for the first quarter of 2025, revealing a revenue increase to $49.4 million, up from $32.9 million in the same period last year. This growth is attributed primarily to the expansion of telecom services through its subsidiary, CrossMobile, which has signed approximately 7,100 prepaid contract subscribers. The company also reported a gross profit of $41.5 million, significantly higher than the $21.2 million recorded in Q1 2024, reflecting improved operational efficiency and reduced costs of sales.

Despite the revenue growth, WHEN reported a net loss of $747,127 for the quarter, a decrease from a net loss of $1.4 million in the prior year. The reduction in losses is largely due to decreased operating expenses, which fell from $1.4 million to $726,716. Notably, research and development expenses decreased from $446,384 to $301,881, while selling and marketing expenses dropped significantly from $27,199 to $3,814. General and administrative expenses also saw a reduction, from $955,131 to $462,537, primarily due to lower share-based compensation costs.

In terms of strategic developments, the company continues to focus on its dual business segments: global telecom and cybersecurity technology. The acquisition of CrossMobile has positioned WHEN to leverage its cybersecurity solutions in the telecom market, enhancing its service offerings. Additionally, the company is exploring further geographic expansion and product integration, particularly in the European market, where CrossMobile operates as a mobile virtual network operator (MVNO).

Operationally, WHEN's total assets increased slightly to $16.1 million as of March 31, 2025, compared to $16.1 million at the end of 2024. However, total liabilities surged to $10.6 million, up from $5.4 million, primarily due to the issuance of redeemable shares and increased short-term credit. The company reported a negative working capital of $982,804, indicating potential liquidity challenges ahead. Management has indicated that existing cash reserves, along with anticipated equity investments from director George Baumeohl, are expected to sustain operations through the third quarter of 2025.

Looking forward, WHEN acknowledges substantial doubt regarding its ability to continue as a going concern without securing additional funding. The company plans to pursue various financing options, including equity offerings and strategic partnerships, to support its operations and growth initiatives. The ongoing geopolitical situation in Israel, where the company has significant operations, may also impact its business activities and financial outlook.